10 November 2017
Reporter: Jenna Lomax

Collateral managers must regroup to tackle incoming regulation

Centralisation of the collateral function should be the highest priority for collateral managers in 2018 in order to ward off demanding collateral rules, according to Ted Allen, director of business development at Apex Collateral.

Allen explained that, due to incoming regulation requirements, firms will likely have to “make the transition from tactical solutions … [for compliance] to a more strategic approach”.

In particular, the implications of the of the second Markets in Financial Instruments Directive (MiFID II), which is due to go live on 3 January next year, will be front and centre in managers’ minds going forward.

Allen also predicted that “coping with rising interest rates and increased collateral requirements will also be a key topic for the year ahead”.

Despite the fast approaching implementation date, Allen admitted that “there’s still a lot of questions around it [MiFID II]”, including how the latest requirements will blend with other incoming frameworks, such as over-the-counter margin rules for derivatives.

He said: “It will be interesting to see if there’ll will be another increase in volumes, caused by the inclusion of FX forwards under the OTC derivatives margining regime”.

Despite industry uncertainty, Allen clarified that Apex was prepared for the implementation of MiFID II and that the firm had “done a lot of work with clients to help them get compliant”.

Allen said: “[Apex has a] highly efficient collateral operations tool to provide full straight-through processing of the margin call process” and that “our clients experience significant efficiency gains from deploying Apex Collateral.”

Subscribe for free to the next issue of Securities Lending Times, published on 14 November, to read this article in full.

More news
The latest news from Securities Lending Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
EXCLUSIVE: Sunil Daswani leaves Northern Trust
21 February 2018 | London | Reporter: Jenna Lomax
Sunil Daswani, head of international securities lending at Northern Trust has left the company
Top of hot stocks: TechnipFMC PLC and Match
21 February 2018 | London | Reporter: Jenna Lomax
TechnipFMC PLC, formed by the merger of oil services companies, led the FIS Astec Analytics hot stocks list for EMEA last week
ISLA responds to BMF’s draft circular
20 February 2018 | London | Reporter: Brian Bollen
The International Securities Lending Association (ISLA) has sent a letter to the German Ministry of Finance responding to the BMF’s draft circular released on 25 January 2018 on the subject of a manufactured dividend rule
SBL Network welcomes independent consultant
20 February 2018 | London | Reporter: Jenna Lomax
SBL Network Limited has appointed Charlotte Clout as an independent consultant
Fidessa sees revenue growth across all regions in 2017
20 February 2018 | London | Reporter: Jenna Lomax
Fidessa has reported that its yearly revenue increased by 7 percent for 2017, ending the year with £353.9 million compared to £331.9 million in 2016
Foreign investment in US down
19 February 2018 | Washington DC | Reporter: Brian Bollen
Official figures, released 15 February, by the US Department of the Treasury show a drop in foreign investment in the US in December
Minium, IBM and Promontory release joint white paper
19 February 2018 | London | Reporter: Jenna Lomax
The patchwork of outdated systems most firms use today is not fit for purpose, according to a white paper jointly released by Minium, IBM and Promontory